Saudi Arabia, Turkey and Indonesia and the Jeddah-based Islamic Development Bank are joining hands to set up a new Islamic finance infrastructure bank. Indonesia’s finance minister Bambang Brodnonegoro. He said the four entities could contribute around $300 million each for the project, with plans calling for the establishment of two regional Islamic banks based in Istanbul and Jakarta. There could be other institutions joining the venture, but the four would be the founders, Brodnonegoro said. The new entities could be operational as early as next year, tasked not only with financing via Islamic bonds (sukuk) but also supporting the secondary market for those financial instruments, he added.
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